Skip to main content
Log in

The Perceptions of Ethical and Sustainable Leadership

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

Sustainable and ethical leadership in the financial industry expand in importance since the financial crisis of 2007–2009. This research examined the level of sustainable and ethical leadership of leaders in mortgage loan originator (MLO) organizations, as perceived by loan originators. The Perceived Leadership Survey (PLIS) developed by Craig and Gustafson (Leadersh Q 9(2):127–145, 1998) and the Sustainable Leadership Questionnaire (SLQ) developed by McCann and Holt (Int J Sustain Strat Manage 2(2):204–210, 2011) were utilized for this research. The survey results yielded high levels of both ethical and sustainable leadership. Employees also felt their leadership was encouraging ethical and sustainable behavior. However, correlations between the PLIS and SLQ did not prove to be dependent or closely correlated.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Notes

  1. Definition of mortgage loan originator (MLO): The MLO works at an originating organization, such as a licensed mortgage bank or registered mortgage broker. The MLO takes a residential mortgage loan application or offer and negotiates terms for such a loan in exchange for compensation or gain.

Abbreviations

PLIS:

Perceived Leadership Integrity Scale

SLQ:

Sustainable Leadership Integrity Scale

MLO:

Mortgage loan originator

References

  • April, K., Peters, K., Locke, K., & Mlambo, C. (2010). Ethics and leadership: Enablers and stumbling blocks. Journal of Public Affairs, 10, 152–172. doi:10.1002/pa.360.

    Article  Google Scholar 

  • Banerjea, P. K. (2010). Wholesome ethical leadership. IUP Journal of Corporate Governance, 9(1/2), 7–14.

    Google Scholar 

  • Bass, B. M. (1985). Leadership and performance beyond expectations. New York: Free Press.

    Google Scholar 

  • Boyd, D. (2010). Ethical determinants for Generations X and Y. Journal of Business Ethics, 95, 465–469.

    Article  Google Scholar 

  • Brenkert, G. C. (2010). The limits and prospects of business ethics. Business Ethics Quarterly, 20(4), 703–709. ISSN 1052-150X.

    Article  Google Scholar 

  • Brown, M. E., Treviño, L. K., & Harrison, D. A. (2005). Ethical leadership: A social learning perspective for construct development and testing. Organizational Behavior and Human Decision Processes, 97, 117–134.

    Article  Google Scholar 

  • Burns, J. M. (1978). Leadership. New York: Harper & Row.

    Google Scholar 

  • Craig, S. B., & Gustafson, S. B. (1998). Perceived leader integrity scale: An instrument for assessing employee perceptions of leader integrity. Leadership Quarterly, 9(2), 127–145.

    Article  Google Scholar 

  • Crews, D. E. (2010, Spring). Strategies for implementing sustainability: Five leadership challenges. SAM Advanced Management Journal (07497075), 75(2), 15–21.

  • Cuilla, J. B. (1995). Leadership ethics: Mapping the territory. Business Ethics Quarterly, 5(1), 5–28. ISSN 1052-150X. 0005-0028.

    Article  Google Scholar 

  • Dallas, L. L. (2012). Short-termism, the financial crisis, and corporate governance. Journal of Corporation Law, 37(2), 265–364.

    Google Scholar 

  • Dervitsiotis, K. N. (2005, October-November). Creating conditions to nourish sustainable organizational excellence. Total Quality Management, 16(8–9), 925–943.

    Google Scholar 

  • Drucker, P. F. (2001). The essential Drucker: The best of sixty years of Peter Drucker’s essential writings on management. New York, NY: HarperCollins Publishers, Inc.

    Google Scholar 

  • eHow.com. What is a mortgage loan originator? Retrieved August 13, 2012 from http://www.ehow.com/info_7957350_mortgage-loan-originator.html.

  • Elkington, J. (1998). Cannibals with forks: The triple bottom line of 21st century business. Gabriola Island, BC: New Society Publishers.

    Google Scholar 

  • Ethics Resource Center (ERC). (2009). Millennials, Gen X and Baby Boomers: Who’s working at your company and what do they think about ethics? Retrieved from http://ethics.org/files/u5/Gen-Diff.pdf.

  • Festinger, L. (1957). A theory of cognitive dissonance. Stanford, CA: Stanford University Press.

    Google Scholar 

  • Jutras, C. (2009). The ROI of sustainability: Making the business case. Retrieved from http://www.aberdeen.com/summary/report/benchmark/5908-RA-sustainability-environmental-stewardship.asp.

  • Kiewiet, D., & Vos, J. (2007, March). Organizational sustainability: A case for formulation a tailor made definition. Journal of Environmental Assessment Policy & Management, 9(1), 1–18.

    Google Scholar 

  • McCann, J., & Holt, R. (2011). Servant and sustainable leadership: an analysis in the manufacturing environment. International Journal of Management Practice, 4(2), 134–148.

    Google Scholar 

  • McCann, J., & Holt, R. (2012) Defining sustainable leadership. International Journal of Sustainable Strategic Management, 2(2), 204–210.

    Google Scholar 

  • Nunnally, J. C. (1978). Psychometric theory (2nd ed.). New York, NY: McGraw-Hill.

    Google Scholar 

  • Parry, K. W., & Proctor-Thomson, S. B. (2002). Perceived integrity of transformational leaders in organizational settings. Journal of Business Ethics, 35(2), 75–96.

    Article  Google Scholar 

  • Poff, D. (2010). Ethical leadership and global citizenship: Considerations for a just and sustainable future. Journal of Business Ethics, 939–914. doi:10.1007/s10551-010-0623-x.

  • NMLS. About NMLS. Retrieved August 13, 2012 from http://mortgage.nationwidelicensingsystem.org/about/Pages/default.aspx.

  • Rodriguez, M. A., Ricart, J. E., & Sanchez, P. (2002). Sustainable development and sustainability of competitive advantage: A dynamic and sustainable view of the firm. Sustainable Development and Competitive Advantage, 11(3), 135–146.

    Google Scholar 

  • Savitz, A. W. (2006). The triple bottom line: How today’s best-run companies are achieving economic, social and environment success—and how you can too. San Francisco, CA: Wiley.

    Google Scholar 

  • Shrivastava, P. (1995). The role of corporations in achieving ecological sustainability. Academy of Management Review, 20(4), 936–960.

    Google Scholar 

  • Slankis, E. (2006). Sustainable thinking, sustainable leadership-the new E.Q. Leadership, 2006. Retrieved from http://www.rayberndtson.com/.

  • Surie, G., & Ashley, A. (2008). Integrating pragmatism and ethics in entrepreneurial leadership for sustainable value creation. Journal of Business Ethics, 81(1), 235–246. doi:10.1007/s10551-007-9491-4.

    Article  Google Scholar 

  • The perils of fragmentation and reckless innovation (2012). Harvard law Review, 125, 1799–1821. Retrieved from http://www.harvardlawreview.org/media/pdf/vol125_perils_of_fragmentation.pdf.

    Google Scholar 

  • Treviño, L. K. (1986). Ethical decision making in organization: A Person-Situation Interactionist Model. Academy of Management Review, 11, 601–617.

    Google Scholar 

  • Treviño, L. K., Hartman, L. P., & Brown, M. (2000). Moral person and moral manager: How executives develop a reputation for ethical leadership. California Management Review, 42(4), 128–142.

    Article  Google Scholar 

  • WCED. (1987). World Commission on Environment and Development, United Nations. Our common future. Oxford, England: Oxford University Press.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Jack McCann.

Rights and permissions

Reprints and permissions

About this article

Cite this article

McCann, J., Sweet, M. The Perceptions of Ethical and Sustainable Leadership. J Bus Ethics 121, 373–383 (2014). https://doi.org/10.1007/s10551-013-1704-4

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-013-1704-4

Keywords

Navigation